Cholamandalam puts tech investment plans on hold, refines its digital approach.
Cholamandalam Investment and Finance Company, a Chennai-based NBFC, has reduced its technology spending in FY25 to ₹101 crore, marking a 5% decline from the previous year. This decrease comes after three consecutive years of heavy technology-led expansion, during which the company’s tech spends had risen significantly. In FY24, the company’s tech spends had increased by 49% to ₹106 crore, following a 43% jump in FY23 and a 51% surge in FY22.
The company’s executives attribute the earlier phase of accelerated spending to a deliberate push to build a digital-first backbone. Over the last three years, Cholamandalam has digitised customer onboarding, deployed AI-driven risk scoring, automated loan origination, and strengthened collections via mobile-led solutions. However, the company is now shifting its focus from investing in new technologies to extracting greater value from its existing platforms.
This recalibration is part of a broader trend across the NBFC sector, with market leaders such as Bajaj Finance and Shriram Finance also shifting away from large-scale capital expenditures. Instead, they are focusing on embedding analytics in decision-making, cross-selling to existing customers, and expanding their reach in Tier-II and Tier-III markets. Industry analysts believe that this moderation signals a new phase in the sector’s digital journey, where companies are now focusing on sweating their assets, embedding AI/ML into underwriting, and monetising customer data.
For Cholamandalam, technology remains central to its strategy, despite the slowdown in spending. The company is sharpening its focus on first-time borrowers, MSMEs, and rural markets, where digital sourcing and risk management provide competitive advantages. Partnerships with fintechs, enhanced mobile-first collections, and analytics-driven credit decisions are expected to power the next leg of growth. Increased automation has also improved efficiency by streamlining processes and cutting processing times.
By moderating its tech spends and doubling down on data-driven efficiencies, Cholamandalam is positioning itself for sustainable growth at a time when credit demand and competition among lenders are intensifying. The company’s assets under management (AUM) have exceeded ₹1.6 trillion, and it is well-placed to leverage its digital capabilities to drive future growth. Overall, Cholamandalam’s decision to reduce its technology spending is a strategic move to focus on extracting greater value from its existing platforms and driving sustainable growth in the long term.
Shriram Finance awards PHD India its integrated media mandate following a competitive multi-agency pitch.
PHD India has successfully secured the integrated media mandate for Shriram Finance, a leading financial services company in India. The agency won the mandate after a multi-agency pitch, demonstrating its expertise and capabilities in delivering innovative media solutions.
Shriram Finance is a prominent player in the Indian financial sector, offering a range of products and services including commercial vehicle finance, passenger vehicle finance, and small ticket finance, among others. The company has a strong presence across the country, with a large network of branches and a significant customer base.
As part of the mandate, PHD India will be responsible for handling the entire media duties for Shriram Finance, including media planning, buying, and execution. The agency will work closely with the client to develop and implement a comprehensive media strategy that aligns with their business objectives and helps to achieve their marketing goals.
The win is a significant milestone for PHD India, as it demonstrates the agency’s ability to deliver innovative and effective media solutions that meet the evolving needs of clients. PHD India has a strong track record of delivering successful media campaigns for its clients, and this win is expected to further strengthen its position in the Indian market.
The multi-agency pitch saw participation from several leading agencies, and PHD India’s win is a testament to its expertise and capabilities in the media space. The agency’s ability to think creatively, combined with its data-driven approach and expertise in delivering innovative media solutions, helped it to stand out from the competition and secure the mandate.
Commenting on the win, a spokesperson from PHD India said, “We are thrilled to have secured the integrated media mandate for Shriram Finance. Our team worked tirelessly to demonstrate our expertise and capabilities, and we are excited to work with the client to deliver innovative media solutions that meet their business objectives.”
The win is expected to further strengthen PHD India’s position in the Indian market, and the agency is looking forward to working with Shriram Finance to deliver successful media campaigns that drive business growth and achievement. With this mandate, PHD India will continue to build on its success and reinforce its reputation as a leading media agency in India.